Zoom Acquires Five9 Platform for $14.7B
Zoom Video Communications has agreed to acquire cloud service provider Five9 for $14.7 billion. The deal will be closed in the first half of 2022, as reported by Bloomberg. Due to this, Zoom wants to increase its share in the corporate market and create a product for contact centers. The company plans to leverage Five9's resources and customer base to develop its Zoom Phone cloud telephony.
Five9 was founded in 2001. It has developed services for call centers that help to optimize and analyze their work. The total number of clients is over 2000, according to the company. Among the cloud solutions that the provider offers on its website are software, assistants for customer support, and services for monitoring employees. Their products are applied in a wide variety of areas: from healthcare to education and outsourcing.
Zoom has proven to be one of those companies that have benefited from total isolation. So, during 2020, its shares rose in value fivefold, and the company's market capitalization exceeded $100 billion. This growth was due to the pandemic when video communication was necessary for remote work, learning, and communication. The company is now focused on expanding its product in order to improve its position in the conference services market.
Five9 is not the first acquisition under this concept. For example, at the end of June, Zoom acquired the German startup Kites, which develops technology for real-time speech translation. According to the company, it will help significantly improve the efficiency of workshops and conferences by introducing the opportunity to translate speech into multiple languages right at meetings. By the way, it is planned to open a research and development center in Germany based on Kites.